Honda is planning to invest more than 400 billion yen ($2.99 billion) alongside Japanese battery maker GS Yuasa to develop and produce cells for forthcoming electric vehicles.
A report from Nikkei Asia asserts that the two companies will launch a joint venture this year that will initially lead to the construction of a lithium-ion battery factory with an initial targeted capacity of 20 gigawatt hours, or perhaps a little more. It is reported that Honda and GS Yuasa will also collaborate on sales and other business operations through the joint venture.
Details of the forthcoming joint venture between Honda and GS Yuasa first came to light in January. At that time it was also revealed that the two companies would consider cooperating on intellectual property management as well as the design of efficient manufacturing systems.
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The partnership will come at a convenient time for the two companies. In December, the Japanese government said storage batteries were a strategically critical product and it believes local development and production of them are key to economic security. As part of this new designation, Japan’s Ministry of Economy, Trade and Industry will provide roughly 150 billion yen ($1.12 billion) to help subsidize the joint venture.
Honda needs to secure large supplies of batteries if it wants to hit its EV sales goals. The brand is currently aiming to sell nothing but electric and fuel-cell vehicles by 2040. It has also secured a supply deal with Envision AESC for EV batteries and has also partnered with LG Energy Solutions on a joint U.S. battery plant in the United States that’s set to open in 2025. Nikkei Asia adds that Honda will also purchase batteries from CATL through 2030.
Honda and GS Yuasa have worked together extensively in the past and in 2009, formed the Blue Energy joint venture to provide hybrid batteries to Honda and Toyota.
